2024 UK Car Market

For car dealers in the UK, understanding the dynamics of the used car market is crucial for success. As we delve into the financial landscape and predictions for 2024, let's explore the insights from Octane Finance and other key players.
 
Finance plays a big role in today's used car transactions, with more buyers opting for financing options. According to the Finance and Leasing Association (FLA), over 2.4 million used cars were financed last year, signaling a 12% increase. This trend is not just a boost for buyers but also presents a significant opportunity for dealers to cater to a broader customer base.
 
Octane Finance, a key player in automotive finance, emphasizes the popularity of flexible financing solutions like Personal Contract Purchase (PCP) and Hire Purchase (HP), constituting 45% of financed deals. Dealerships can leverage these options to make high-quality used cars more attractive to potential buyers, potentially leading to increased sales.
 
Autotrader's data complements this trend, revealing that 70% of used car buyers in the UK utilize some form of financing. This insight is valuable for dealerships aiming to tailor their sales strategies to meet the preferences and financial needs of their customers.
 
Looking ahead to 2024, the Society of Motor Manufacturers and Traders (SMMT) projects continued growth in the used car market. From a dealer's perspective, this forecast is encouraging, indicating sustained demand and opportunities for increased sales. Dealerships can align their stock and marketing strategies with this positive outlook to capitalize on the anticipated growth.
 
However, as more buyers turn to online platforms for research, dealers should ensure a strong online presence. Collaborating with finance partners like Octane Finance and our website partner 67Degrees can enhance the appeal of your dealerships offering, as buyers increasingly seek transparent and flexible financing options and seamless online journeys.
 
In summary, the used car market in the UK represents exciting prospects in 2024 for dealerships and in combination with leveraging Octane Finance’s diverse lending panel and class leading customer service together we are looking at a busy and prosperous New Year.